Seadrill Record Best-ever Quarterly Result

Press Release May 28, 2013

Jack-up Rig West Ariel: Photo credit Seadrill

Seadrill announces favourable first quarter 2013 financial results.

Highlights
    •    Seadrill records its best operating quarterly result ever and generates first quarter 2013 EBITDA*) of US$713 million
    •    First quarter 2013 net income of US$440 million and earnings per share of US$0.87
    •    Increases the ordinary quarterly cash dividend by 3 cents to US$0.88
    •    Economic utilization for floaters increased to 92% in Q1 2013 from 86% in Q4 2012
    •    Economic utilization for the jack-up fleet in Q1 2013 was 99%, up from 94% in Q4 2012
    •    Seadrill ordered four jack-ups for a total estimated project price of US$230 million per rig, with deliveries in 2015
    •    Completed the acquisition of the ultra-deepwater semi-submersible rig Songa Eclipse for a total consideration of US$590 million
    •    Secured a 2-year extension for the ultra-deepwater semi-submersible rig West Leo with a total estimated revenue potential of US$430 million
    •    Completed the sale of the jack-up rig West Janus for US$73 million recording a gain on sale of US$61 million
    •    Seadrill issued a NOK1.8 billion unsecured bond maturing in March 2018

Subsequent events
    •    Seadrill completes the sale of 18 tender rigs to SapuraKencana Petroleum Bhd. for a total consideration of US$2.9 billion on April 30, 2013
    •    Secures a three-year contract for the newbuild drillship West Neptune with a total estimated revenue potential of US$662 million
    •    Completes the sale of the tender rig T15 to Seadrill Partners LLC (SDLP) for a total consideration of US$210 million

Cash flow
As of March 31, 2013, cash and cash equivalents were US$361 million, an increase of US$43 million compared to the previous quarter.  Net cash from operating activities for the period was US$423 million and net cash used in investing activities for the same period was US$1,074 million, primarily related to additional payments for newbuilds and the acquisition of the Songa Eclipse.  Net cash from financing activities was US$694 million, primarily because of net proceeds from the issuance of debt. 